Direct calf sale prices

[Brute 23]

For those of you that contract groups of calves direct to buyers, basically not the the auction barn, what kind of premium do you get over auction barn prices, if any at all?

I ask because I have some one who approached me about buying my calves direct. I will need to be sure the cows are as sinced up as possible for uniformity (not a big deal) and I will have to steer the bulls (also not a big deal for the right price).

I'm looking for a good way to set the deal up so that it is mutually beneficial and preferably I can lock the price or have some form of pricing to go off of.

Any thoughts on how to go about this are appreciated, especially if you have experience on the buying or selling end of similar transactions.

Thanks in advance. :tiphat:

 

[WFfarm]

Are you planning on backgrounding your calves, or selling straight off the mamas? What size groups are you anticipating?

 

[Brute 23]

I will be holding some past weaning. Basically the buyer wants x amount a month so when I wean a place some will go pretty quick and the others will go in groups, monthly, there after.

 

[jltrent]

I hope you are on to something Brute, as I have tried everything and just got to the point I will do like I always do and take my beating and go home. I try to watch the imputs and what I myself have control over....taking the middleman out could take some of the expense out, which may help in the short run........

 

[HDRider]

I have a guy now that buys my weaners for backgrounding. I get market price, but no fees or commission.

 

[TennesseeTuxedo]

I have a guy now that buys my weaners for backgrounding. I get market price, but no fees or commission.

That's a good deal for both of you.

 

[WFfarm]

We pool our calves with a neighbor and sell direct to a finisher. We wean at 6 months from the pasture and background for about 40-50days in a lot. In that time they are started on grain in a bunk and learn to drink from water trough. We also give vaccination, wormer and follow up booster. Most are banded at birth.

We settle on a single price based on the highest price from the local sales barn for comprable steers, plus 5-10cents. Feeder heifers here at the local sales barn usually sell for 10-15 cents lower than steers. We don't pay comission and the buyer has his own rig for shipping.

 

[Stocker Steve]

Have to look at price and shrink together.

An issue I have had is the buyer offers a good price, shows up with a pot to load, and then decides that he wants to sort off a couple penned calves for various reasons...

 

[jltrent]

If everybody sales direct there will soon be no local sales barn. Then we will get what they offer and as with everything else their requirements will increase and their price will go down. It want surprise me before long to sale cattle a DNA test will be needed and price will be based somewhat on that along with a tag ID.....

 

[TennesseeTuxedo]

Is "want" the equivalent of "won't"?

 

[Bigfoot]

I can sell backgrounded calves off the farm. To two different people actually. One doesn't want anything over 600 pounds, and the other likes 700+, but not over 800. I was/still am "thinking" about getting a truck and ground load trailer and cutting them out when I retire. Looking more each day like I will retire and go go right back to work. So, I guess I shouldn't burn my bridge there. I was a solid 12-15 cents over the local sale barn pricethis year. I don't have a place for fresh weaned calves. I really don't know why many people would be buying wearers off the farm. What would be the end game? The buyer is taking the risk, why would he give a premium to the seller?

 

[Brute 23]

It sounds like .10 over is a fair deal. I kind of had that in my mind so hearing that from several of yall sounds like a good place to start.

Im a little confused on buying them that young but it's not really my deal. It's working for him now enough that hes trying to move quite a few cattle so that good for me.

Long term if it goes good I'd like to see if he would let me carry them longer and cut down on some of the feed lot time. That has got to be expensive as all get out. I could easily do a grass/feed mix and put weight on... probably cheaper than the feed lot.